§ 76. Sir Irving Alberyasked the Financial Secretary to the Treasury why Income Tax is deducted from the salvage awards to tugs especially engaged on salvage work and not from awards to tugs casually so employed; and whether he is aware that this discrimination is causing confusion and dissatisfaction?
§ The Financial Secretary to the Treasury (Mr. Assheton)I would refer my hon. Friend to my right hon. Friend's reply to the hon. Member for Southampton (Dr. Russell Thomas) on 28th April last, in which he announced that a wartime concession had been authorised under which salvage awards to officers and crews of ships not specifically employed on salvage work, in respect of services rendered during the war, would not be assessed to Income Tax. The distinction to which my hon. Friend refers proceeds on that principle. Salvage awards to crews of tugboats not specifically engaged on salvage work are treated as not being liable to tax, but in the case of tugboats specifically engaged on salvage work the awards arise from the work on which the crews are regularly employed, and there can be no question of relieving their income from tax.